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pshichka [43]
3 years ago
12

3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t

rade axes for batons if: (A) The price of batons is higher than Alphaland's cost to produce axes. (B) The price of batons is lower than Betaland's cost to produce axes. (C) The price of batons is lower than Alphaland's cost to produce batons. (D) The price of batons is higher than Betaland's cost to produce axes.
Business
1 answer:
Nady [450]3 years ago
7 0

Answer: Option (C) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.

From the information given in the question, it is clear that Alphaland has a comparative advantage in axes and Betaville has a comparative advantage in batons.

Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.

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PV = A*[1-(1+r)^-n]/r

A = annual payment = $100,000
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4 0
3 years ago
AlwaysRain Irrigation, Inc., would place for making bronze and plastic sprinklers. Three types of sprinklers are available in bo
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Answer:

The requirement for the next four years higher than the current available capacity.

Explanation:

AlwaysRain Irrigation, Inc., has 3 bronze machines and one injection molding. The bronze machine total available capacity is 60,000 / year which is calculated by 20,000 sprinkles * 3 machines.

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8 0
3 years ago
Which of the following elements of a process most directly impacts or affects process capabilities? Multiple Choice Activities I
Charra [1.4K]

Answer:

The correct answer is letter "C": Process Structure.

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The process capabilities are directly affected by the Process Structure. The Process Structure includes the infrastructure a company counts on for handling businesses. Facilities, equipment, and locations determine how the business will be handled and at what scale.

8 0
3 years ago
Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
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gay

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3 years ago
A company provided the following direct materials cost information. Compute the total direct materials cost variance. Standard c
lord [1]

Answer:

C. $78,250 Unfavorable.

Explanation:

We know,

Material cost variance = (Standard quantity × Standard price) - (Actual Quantity × Actual price)

Given,

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Therefore, C is the answer.

4 0
3 years ago
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